Crackdown on aggressive solar selling prompts call for law change

Solar installers have come under fire for unscrupulous selling practices.

Renewable energy consumer body YouGen is calling for a change in the law after a review by the Office of Fair Trading revealed unscrupulous selling tactics by solar and other energy efficiency companies.

The organisation, which provides consumers with information on renewable energy systems, wants to see an end to doorstep selling by solar companies and a ban on their ability to pressure customers into signing a deal on the day of a sales visit.

The call came as the OFT published a review revealing the high pressure selling techniques employed by solar, insulation and double glazing installation companies, some of which are in breach of consumer law.

These included salespeople staying in customers’ homes for several hours, or indicating that a product is only available at a discount if bought immediately.

The OFT said it was cracking down on the practices and had written to 50 leading companies in the energy efficiency sector reminding them of their obligations under consumer law to take responsibility for their sales representatives. It has also launched a separate investigation into the worst of the selling practices identified in its review.

But YouGen wants the government to go further and change the law on doorstep selling techniques, particularly ‘deal on the day’ contracts.

“If companies are unable to sign a deal on the day, it removes the temptation for unscrupulous sales people to use most of the aggressive sales practices that the OFT is talking about in its letter,” said Cathy Debenham, founder of YouGen.

“These are products where it would be wise to compare suppliers and to think about the pros and cons, both of going ahead with the work, and of the approach and quality of different suppliers. Reputable suppliers would expect customers to get several quotes, and would only give a full quote based on a thorough survey.”

The organisation has launched a petition to the government calling for a ‘deal on the day’ ban.

“I welcome the OFT’s work on cracking down on these companies. UK homes are some of the draughtiest in Europe, and it would be a great pity if people are put off investing in worthwhile home improvements by the aggressive sales tactics of a minority of companies," said Debenham.

“If we are to maintain consumer confidence in the idea of improving home energy efficiency it’s important to eliminate poor and misleading practice from the industry.”

Nisha Arora, Director in the OFT's Services, Infrastructure and Public Markets Group, said: "Energy efficiency products offer real benefits to consumers and the sector has significant potential for business growth. However, it is important that people can be confident the companies they deal with are complying with the law, and that they are able to make informed purchases, without pressure sales techniques.

"Many businesses in this sector comply with the law and engage in good business practices but we urge others to raise their standards. Businesses that fail to address the issues that we have identified risk enforcement action."

I agree with Jeremy, why would you need to do a re-visit anyway? having been part of this industry we took great pride in our integrity and quality of service and install only to have the industry given a bad name by companies doing exactly what this legislation is trying to change. If you were offering a good product at a good price you should not need to offer a buy it now price. We all know how the pressure selling works let not delude ourselves that its for the good of the environment - you are clearly trying to force a sale before a better priced alternative is presented often preying on the vulnerable and yes, some people do need 'wrapping up in a blanket' as you put it. Dress it up how u like but that is the raw truth!

Posted by dorset solar installer on 2013-01-22 15:06:31

So if come to your home and offer you a solar system and say i will reduce the price by £500 as this will save me coming back to re-visit taking both more of your and my time and hence money, not to mention the added carbon and pollution as i have to drive my car! You think this is wrong! Really people can make their own mind up. The human race is pretty resilient stupid at times yes but i really don't think they need wrapping up in a blanket like a baby. No wonder the worlds economy is in a shocking state and moves like this will just make things far worse.

Posted by D.S. Solar Resource on 2013-01-18 16:07:23

DS Solar - I 'm afraid I couldn't disagree more with you. Of course a "deal on the day" is wrong and puts pressure on people to buy, while at the same time preventing them from having the opportunity to compare your service with other, better companies.Why are you offering a deal anyway. Surely, if you have a fair price in the first place, just quote your fair price and then, if it is genuinely a good price for good quality, then, once they have looked around, the customer will come back and order. Also, if you quote an initially high price, some unsuspecting, vulnerable customers will end up paying. If they don't go for the high price, then you pressurise them to buy from you by offering a "deal on the day". Either way, it is bad for the consumer, which is the whole point of putting consumer legislation in place to prevent the practice.

Posted by Jeremy Fisk - C Changes Ltd on 2013-01-18 12:16:48

A deal on the day will always be and there is nothing wrong with it. It's what converts more potential clients into paying customers, with increasing lead generation costs its a must. This does not mean a pressure or forced sale, simply a buy now offer to save more money.

Posted by D.S. Solar Resource on 2013-01-17 17:11:33

These companies will still do deals on the day no matter how much regulation. There's already regulation through MCS but if no one carries out spot checks I'm not sure what can be done. My opinion the more regulation the more chance of this happening because they will always hide behind codes of practice and false membeship logo's on websites. Wait while Green starts, thats the next big pay day for the rogues who might by then leave SPV alone. P.S a guy I know paid £1500 deposit for free solar on a North facing hip roof which would only fit 6 panels. Luckily I managed to get his money back for him 2 weekd later they went bust.

Posted by jon on 2013-01-16 13:37:13

I hope that the unscrupulous companies reading this article are quaking in their boots!! The many of us who work hard to create a good reputation for the industry are fed-up with the high pressure tactics employed by some which only serve to ruin it for us all. We should be building an industry to be proud of - not fleecing old ladies. If you are a company who treats your customers with respect and provides a quality service, I urge you to back any campaign to get the rogue traders kicked out of the industry as quickly as possible.

LH - Caplor Energy

Posted by Laurence Hughston on 2013-01-16 10:31:30

Interesting article. Many "deal on the day" companies spend £m's promoting the respective industries and whilst I can't agree with the aggressive sales techniques I would promote a middle ground being sought that kept these big marketing spenders in the industry, whilst being then fair to the customer... How would this be done? A challenge for sure. As by it's nature marketing pushes up the overheads and then not doing a "deal on the day" leaves the door open for under cutting by others that don't spend the big marketing budgets.

Many in the industry want to move the "Sales Companies" out. This may seem a great way to boost sales for the rest in the short term but there are long term consequences. If the "sales companies" leave, we're all worse off in an industry that is under supported by smaller marketing budgets. In 2011 the marketing spend on solar was very high... with £ms generating a national buzz. That's evidently now running at a lower level, which could be directly linked to a lower rate of installations (how many times do we read that the returns are as good as they have ever been, but the price is less, so more people should be taking it up but for some mystical reason the rate of installations is less than before).

If these guys stay then there needs to be a level of consumer protection that still allows them to recover their costs of sale. That is then best for everyone.

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